Toyoto Case

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ase Details:| ------------------------------------------------- Price:|
Case Code| :| HROB088| For delivery in electronic format: Rs. 300; For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges------------------------------------------------- Themes-|

Case Length| :| 16 Pages| |
Period| :| 2000-05| |
Pub Date| :| 2006| |
Teaching Note| :| Not Available| |
Organization| :| Toyota Motor Corporation, Toyota Kirloskar Motor Private| | Industry| :| Automobile| |
Countries| :| India| |
The case examines the industrial relations problems at Toyota Kirloskar Motor Private Limited (TKM), an Indian joint venture between Japan based Toyota Motor Corporation and Kirloskar Motors. The case discusses the various reasons, which led to the dispute between the management and the employees of TKM. It elaborates the incidents, which led to the strike and lockout at the company.

The case highlights the growing number of instances of clashes between the employees and the management of companies in India, which is often guided by external parties such as trade unions and political parties.| | -------------------------------------------------

» Understand the factors that lead to strikes and lockouts at a factory and the impact of such happenings on the employees and the company

» Study HR policies adopted by organizations to prevent labor unrest at the workplace

» Examine the role played by the top management in ensuring peaceful working environment

» Analyze the role of external parties such as trade unions; political parties etc in disturbing the working environment in a company We have requested the government to intervene in the matter immediately and prohibit the lockout declared by the management which is illegal. The government should prosecute the management for violating labour laws and issue immediate relief to the dismissed employees such as reinstatement and payment of wages during the dismissed period."1 - Meenakshi Sundaram, General Secretary, Centre of Indian Trade Union, Bangalore, in 2006. "How long can we put up with unruly behaviour? We would like to restore normalcy as soon as possible, but at the same time, we would not like to compromise on discipline."2 - A R Shankar, General Manager, Corporate Planning Division, Toyota Kirloskar Motor Private Limited, in 2006. "There are another 11 people suspended by the management and we fear they may also be dismissed. We are officially supposed to work for eight hours but we are overworked sometimes. And we are treated in such a way, that we can't even take a bathroom break when we want."3 - R. Ravi, Union Joint Secretary, Toyota Kirloskar Motor Employees Unions, in 2006. -------------------------------------------------

On January 08, 2006, Toyota Motor Corporation's (Toyota)4 Indian joint venture company, Toyota Kirloskar Motor Private Limited (TKM) declared a lockout5 at its plant in Bidadi, Karnataka. The lockout came after two days of agitation by the plant's employees against the dismissal of three workers by the management. The strike was the outcome of an incident that occurred in February 2004 when the management suspended 15 employees on the grounds of disrupting work and for unruly behavior. In 2006, TKM dismissed three of these fifteen employees after a year-long investigation and appraisal of their performance. The management stated that the three employees had been dismissed due to their indiscipline and poor performance.| | In response to the company's decision, the employees belonging to the TKM Employees' Union (TKMEU) decided to go on strike. | They alleged that the three employees had been dismissed because they had been actively participating in the functioning of the...
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